Funding for property upgrades
The ECO scheme (Energy Company Obligation) was introduced by the government to help tackle fuel poverty, while lowering the country’s carbon emissions.
It places a legal obligation on large energy providers to allocate funding for a range of energy efficiency home improvements for low income households.
ECO4 is the name of the current scheme and was introduced in April 2022, superseding ECO3 .
The energy efficiency measures that can be funded under the ECO scheme will depend on the Energy Performance Certificate (EPC) rating of your property. As part of the process, an approved ECO4 installer will be qualified to carry out an assessment of your property to determine whether work can be carried out under the scheme.
Properties with an EPC rating between A to E will be eligible to receive funding for a wider range of measure types. Properties with an EPC rating of F or G will be restricted to receiving funding for first time central heating, and insulation of a solid wall.
How does ECO4 funding work?
The ECO3 scheme is designed to improve the energy efficiency of the country’s most inefficient homes. As a landlord you may be eligible for an ECO4 grant if your tenants are in receipt of certain benefits or deemed to be on a low income by the local authority.
If you are a landlord with a residential property, the EPC rating of your property will determine the energy efficient measures that can be installed. If you do not know what the current EPC rating is, you can use this free online tool to find out.
Properties with an EPC rating between A to E will be eligible to receive funding for a wider range of measure types. Properties with an EPC rating of F or G will be restricted to receiving funding for a first time central heating grant, or insulation of a solid wall.
What upgrades are covered by ECO4 funding?
Dependant on eligibility and the current EPC certification of the property the upgrades available through ECO4 include:
- Cavity wall insulation
- Loft insulation
- External wall insulation
- Internal wall insulation
- Room in roof insulation
- Underfloor insulation
- Boiler upgrade
- Electric storage heater upgrades
- First time central heating
- Heating controls (including smart thermostats)
- Free first time central heating and loft insulation grants for landlords
Popular measures that we are often asked about by landlords are first time central heating grants, free wall insulation and free loft insulation.
It is important to remember that there is no guarantee that measures offered under the ECO scheme will be free of charge and, depending on the situation, costs could be incurred. Dependant on the property and your tenant’s eligibility criteria, funding for these measures may be available under ECO4.
Meeting your landlord EPC obligations
Since 1st April 2018, it has been a legal requirement for any properties rented out in the private rented sector (with very few exemptions) to have a minimum Energy Performance Certificate rating of an ‘E’. It is important to remember that there are strict financial penalties imposed on landlords for not adhering to this.
ECO4 funding can help you ensure you are meeting your obligations for the minimum required Energy Performance Certificate rating.
Find out more
How to access ECO funding
Anesco acts as a managing agent for the ECO4 scheme and we will be able to connect you with a local approved installer in your area.